COVR-Cover-All Technologies Inc. Announces Record YTD Revenue, 14th Consecutive Profitable Quarter
Cover-All Techs (BB) (OTCBB:COVR)
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Today : Wednesday 11 August 2010
Cover-All Technologies Inc. (OTC Bulletin Board: COVR), a Delaware corporation (“Cover-All” or the “Company”), today announced financial results for the second quarter and six months ended June 30, 2010. The results reflect the contribution of Moore Stephens Business Solutions (MSBS), which was acquired on April 12, 2010, and includes approximately $285,000 in acquisition expenses, which were reported in the first quarter of 2010.
For the six months ended June 30, 2010 revenue was $8.4 million compared to $5.8 million for the first half of 2009, an increase of 45.8%.
Continuing revenue (maintenance and ASP revenue from contracts) for the first six months of 2010 was $4.0 million, up 14% compared to $3.5 million for the same period in 2009.
Total expenses (cost of revenue and operating expenses) for the first six months of 2010 grew slower than revenue, to $7.0 million (inclusive of $285,000 in one-time acquisition expense), which is up 34% compared to $5.2 million in the first half of 2009.
Operating income for the six months ended June 30, 2010 was $1.5 million (inclusive of the $285,000 in one-time acquisition expense), up 145% compared to $598,000 in the first half of 2009, as operating income grew at a rate more than three times as fast as total revenue, demonstrating the leverage in the Company’s business model.
The Company’s balance sheet remains strong with stockholders’ equity at a record $13.2 million as of June 30, 2010. The Company completed the first half of 2010 with $4.7 million in cash, $5.6 million in working capital and $200,000 of long term debt.
During the quarter ended June 30, 2010, Cover-All acquired Moore Stephens Business Solutions LLC (MSBS) for $2.45 million in cash, 18-month notes and equity, with no assumed debt or liabilities. On a trailing 12 months basis, MSBS had generated approximately $6 million in revenue and the acquisition has been accretive to earnings in the second quarter of 2010.